Ternium Reports Better Than Expected Q3

Mexican steelmaker Ternium’s operating rates are approaching full capacity after strong improvement in shipments and demand in the third quarter. Total steel shipments rose 16 percent from the second quarter to 2.8 million tons. Higher finished steel shipments partially offset lower slab shipments to third parties. Pricing recovered significantly from the trough in the second quarter. Net sales jumped 23 percent to $2.14 billion resulting in better than anticipated net income of $173 million.

Ternium’s primary market in Mexico rebounded in the third quarter, with shipments up 23 percent to 1.4 million tons. More than half of lost second quarter volume was made up in the third quarter due to strong demand in the U.S. for autos, appliances and HVAC. In Mexico, demand has been steady for small construction as well as for some government infrastructure programs. Manufacturers continued to ramp up facilities in Q3 after shutdowns in the early months of the pandemic.